Real estate is the next major industry to be impacted by NFTs. Non-fungible tokens (NFTs) have been gaining traction as a medium of exchange in the digital space, and NFT real estate is no different. It allows investors to purchase a property or fractional shares of real-world properties, and benefit from their growth in value over time.
NFT real estate isn’t limited to just physical property, either. Companies like Decentraland and The Sandbox are paving the way in virtual worlds, creating a new type of metaverse while integrating blockchain technology.
In this article, we’ll cover why cryptocurrency mixed with real estate investment could be the next big trend, some of the companies behind digital real estate, and other companies focused on the physical real estate using fractional ownership and membership.
Why NFT real estate is the next big trend?
First, NFTs provide secure and transparent transactions, allowing buyers to be sure they are getting what they pay for. The digital nature of these assets makes it easy to transfer ownership quickly and efficiently without worrying about paperwork or complex legal processes. In addition, NFT real estate is not subject to the same tax liabilities as traditional real estate, giving investors a more attractive option for investing their money.
Second, real estate investment via NFTs is also a great way to diversify your portfolio through fractionalized ownership – meaning you can purchase a share of an entire property without needing to buy the whole thing. Furthermore, owning NFT real estate gives investors access to appreciation when the property value increases over time, allowing them to benefit from any increases in value without having all their eggs in one basket.
Finally, it has significantly lower barriers to entry when compared with traditional real estate investment. With no physical infrastructure or high costs associated with purchasing houses or land, investors have the opportunity to diversify their portfolios without breaking the bank. All of these benefits make NFTs the next big trend in real estate investment, allowing anyone the chance to build a diverse portfolio and potentially reap significant rewards.
Examples of innovative companies
The discussion around NFT-based real estate investments can get complex and nuanced quickly. To make it simple, let’s divide them into two types of assets: purely digital on the one hand and physical assets mixed with digital on the other.
For example, The Sandbox is a company that created a metaverse that combines NFTs with gaming elements. Players purchase NFT tokens that represent in-game assets such as weapons, vehicles, or armor – these NFTs then act as the currency within the game’s economy. The NFT tokens used on The Sandbox also give players a stake in the platform – meaning they benefit when the platform grows over
Another company paving the way for NFT real estate investments is Decentraland, a virtual world where NFTs are used to purchase plots of land. NFT real estate in Decentraland is unique because it allows users to build and create anything their imagination can come up with – from shops to art galleries or even entire cities.
On the physical side of things, Meta Estate Empire is at the forefront of how we think about NFT real estate investments. Rather than offering membership through NFTs, they offer investors the ability to fractionally invest in property using NFTs with the smart contract ERC1155 and the token as ERC20 with the possibility to migrate from ETH to Lightning Taro. The maximum supply will remain at 210 million tokens with a deflationary and DAO system for voting. Within the platform, investors can see real-time market updates giving them unparalleled flexibility to diversify their portfolio as they wish.
The real estate market is one of volatility and uncertainty. With Meta Estate Empire, investors can buy in multiple locations fractionally, mitigating risk while bringing opportunity for blockchain technology within physical real estate. The platform adds liquidation to an illiquid market, allowing for all investors a piece of the pie. Plus, the platform holds multiple unique selling propositions like auctioning, tokenizing, and buying real estate assets in addition to fractional ownership.
In addition, companies like Propy are revolutionizing the way real estate is bought and sold around the world by leveraging blockchain technology. Propy’s platform allows users to close traditional real estate deals entirely online, eliminating fraudulent transactions and saving up to ten hours of paperwork per transaction. All offers, signed agreements, payments, and title deeds can be managed from one platform with integrations to other services like DocuSign or wire transfers.
Will blockchain real estate be the future?
NFT real estate is an exciting new way for investors to diversify their portfolios and reap the benefits of appreciation on a fractional basis. The secure transactions and low barriers to entry make NFT real estate enticing for several reasons. It allows nearly anyone to get in at an entry-level cost, while still giving them the potential to benefit from any increases in value over time.
The NFT real estate market is still in its early stages, but it is gaining ground quickly. Even though we currently face a crypto bear market, more companies and platforms are moving towards this asset class. It’s hard to predict the future, but NFT real estate looks like it has the potential to become one of the most popular investment assets in Web3.
Disclaimer: This is a paid post and should not be treated as news/advice.
Source: https://ambcrypto.com/meta-estate-empire-sets-a-new-standard-for-nft-based-real-estate-investments/